Piraeus Bank agrees to sell Serbian operations to Direktna Bank

Piraeus Bank, Greece’s largest bank by assets, agreed to sell its Serbian operations to Serbia’s Direktna Banka, Piraeus said on Tuesday.

The bank is still struggling with problem loans after recession in Greece pushed unemployment to record highs. It has said it would slim down by selling wholly owned subsidiaries in Bulgaria, Romania, Serbia, Albania and the Ukraine to reduce its foreign exposure.

Piraeus said Direktna will acquire its Serbian banking and leasing activities for 58 million euros to 61 million euros ($68 million to $72 million), depending on the financial performance of the divested assets until the deal is concluded.

The transaction is expected to be completed in the first quarter of 2018, subject to regulatory approval, Piraeus said.

BNP Paribas acted as its financial adviser for the sale. [Reuters]